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tv   The Willis Report  FOX Business  December 24, 2012 3:00pm-4:00pm EST

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lucky charms to go along with it. a four leaf clover to a buddhist statue, all of which will be installed on top of times square to rein in the new year. he think it will make a difference? >> from the mine apocalypse to a whole year with the number 13. but you guys stay in hotels that have the 13th floor? 2013 and directed 2014. melissa: i don't like the sound of that at all. >> of the people want to skip 2016. melissa: at the you're going to stay silent. merry christmas. merry christmas to everyone out there. kids, i'm on my way. that's all the "money" we have for you tonight. merry christmas, everyone. ♪ pass backhaul
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gerri: hello, everybody, i am gerri willis. it has been a tumultuous year for the markets. weak economic growth, and of course the election itself. some analysts picking games 2013 as much as 14% of the market and others lost as much as 14%. it is not working for me today. i think we should talk about else.i'g i will get to talk about a santa claus rally. ral is there a santa claus rally?ra will we have a true santa claus rally? >> listen, think it'll b it wile tough to get one this year. i think there will be a lot of repositioning in portfolios coming toward the end of the year. a people are getting very nervous about the fiscal cliff. i was on the show a couple of weeks ago whe and i was not a tn concerned because i thought we would get a deal done.al
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it is starting to hurt people.ut a good call by you. frankly, gerri, that is what will hurt stocks and investors spending or appetite as s well.e gerri: i love it when you tell me i am right. it often doesn't last very longy i have got to think when we get some real claritytt on this no matter what whether it is good x or bad for investors and taxpayers there will be a little relief in the market, don't you think? >> i think so. clarity, what a lot of people are looking for. both sides of the aisle wants to get something done, it is just what.y we talk about the s&p 500. when you look at corporate profits and the impact, potential changes in the tax relations will be on those company profits, you have to revalue the market somewhere in here which is a lower price again companies trying to have to pay the government more money.
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gerri: let's talk about 201 201n what we might expect. expectations over the place. citigroup predicted stocks 14% next year, morgan stanley 1%. where do you fall? >> i'm probably up at 4% or 5%. not expecting that great of a year as far as the end of the year. i think it will be pretty bumpy the beginning of the year while this all gets worked out and people reevaluate the landscape ofds everything. gerri, i will comment on the numbers you threw out there. this scares me people are so positive. i don't want to spike the eggnog, but the fact there is not one person or one bank that says the market will be down next year frightens me a little bit. gerri: wells fargo says the market will be down 2%. but they're the only ones to sae it. a lotbo of optimism but we have beenbe in this bull market for a
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long time it v has been very strong. people start that in the same thing happen over and over again. is that what you see your fellow strategists make? >> sometimes, you chase the returns and end up getting in at the last minute and hit when the market goes down. you made a good comment, it has been a bull market but the average investor hasn't pa participated that much in thesen games so i'm hoping they are not being left out in the cold as the market tops out. gerri: usually the smallest investors get in the latest in the rally and often miss the it highs. it always happens that way. you say housing will be an important part of growth in 2013. finally you think it will happen?r >> believe it or not, gerri, i really like the housing sector. the banks are lending money. the problem is house is only about 5% of gdp after that dissipatedecimated the previous.
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gerri: always great to talk to you and i will work on scottks martin stock market. >> i will stay in business one more day. gerri: thanks so much. as the economy sputters along the housing market showing real signs of a rebound. home prices up, sales rising and mortgage rates at record lows. will it last? what should you do to make money off the rebound? welcome back to the show. >> thank you, gerri. gerri: it is always so great to haveleth you. do you think people are dumping properties in advance of december 31? >> they don't have much time left. i think what is more the truth is people.e using it as an excue to say you will get a great deal in mon my house, i will give ito you if you will close by december 31. it doesn't really happen. it is a good little trick that t you have to realize $3 million
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house selling to a guy with $3 million to spend, he will not that, hetetrick like will negotiate hard like he always does.at gerri: i want to talk about one of those issues at the margins of the conversation on the fiscal cliff, do we get rid of the mortgage deduction. lots of pros and cons. people sang that will cost 15% of housing prices. what do you think the impact will be?? >> do not think it will have that effect.t we have bad news in the housingg market is people pause for a absorb it and they move on. what we have going on is so much pushing, upward momentum on the housing market that i can't eveg fathom that affecting housing prices. hardly at all, quite honestly. gerri: do you think first-time buyers in particular rely on that deduction?ki the they think about that making the decisions to buy. waimight discourage people who otherwise might get into the market?sae >> for some people it makes them pause a bit.y
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remember, they're being tempted back in by cheap prices, really cheap money and thoserip are gt moment his swings that push people back in. gerri: i think this is a great time to be back in thee market.e in some places have you missed it? >> if you really want to be a sharpshooter, buy at the low, e yet missed two-thirds of the low point of every market in america. only one third is still depressed, two-thirds are going up and some havendnu had record numbers. gerri: if you are looking right now, where would you look? >> the opportunity if you want to get a steal of a deal in ord descending order it a house in the northeast because anybody with a house on the market hasn't soldou it is really going to discount their house right now. an gerri: and sandy is a big issues >> sandy is a big issue, but a great time to buy right now. timeshares are still
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languishing. you can get it on $0.30 per dollar. t gerri: that is greathe advice. what else can you give, what advice they give to people who may be trying to get rid of the house right now, trying to unload a house, maybe they lost a lot of value in the property. >> it is no fun to have to adjust to the idea you're going to get less money, but what is great is you have another 30%yes increase in buyers out there. one third fewer homes for sale, so less competition and more people who want themth. you also have buyers are believing the best part of the market might be gone, and that really pushes the market gives you a higher bid. homeowners, the best is yet to come.rom gerri: i hear this from people who are not experts in the housing market, but this is what real people think about it. i saw what happened in 2007,
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2008, i am never going to buy. because you never know what is going to happen. >> you will not end up with a house in the best school district or the prettiest block the prettiest town with the best appreciation. you cannot show it off to the mother-in-law.wing they will be sitting there six years from now and thinking what was ig thinking, what with the possibly thinking i could've gotten this house 40% less than i am paying this year.ey'r tell your friends they are not thinking right.ree gerri: i so agree with you. the market goes up, it goes down and went down for long time, it will recover.l >> and i will sell you a house. gerri: let's sit down, have a cool places i want to look. >> thank you very much. gerri: one of the bellwether places for employee benefits. changing the way it manages 401(k). and if president obama breaks the law with what he calls recess appointments.
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taking a look at the new case making its way through federal court.
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gerri: did president obama brthe gerri: did president obama breaks the law? federal appeals court p isela deciding who th the presidents appointed to national labor board when the president was on recess was unlawful. because senate republicans say o the senate was in session. the case brought on by a company after the nlrb ruled that the company must enter into collective bargaining agreement on c a labor union. the companies arguing the decision can't be made because the recessca appointments are invalid.igh here to weigh in, legal analyst and, criminal defense attorney. i want to go to you first. at the end of the day this whole thing is just an argument about> was the senate in session or was it not? >> the president may have skirted the law little bit like
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sidelining it, but did they cross over the line? no. does this happen all the time?li yes. itss does. t >>he the skirted the law like im wearing a skirt. gerri: that would be known. >> let's take a step back and design for this was to do. the founding fathers said look, if you have to make a temporaryr appointment, the senate confirm it, we will not drag the senate back in, so mr. president do what you have to do, goes for the convenience of the senateth not to screw the senate which is what the president is doing.we gerri: this is a family show. was a president trying to get around the senate? do something a senate did not like? >> he may have skirted, but he did not go over the line. so legally it is proper. you can't argue with that.
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>> they killed it, he threw it out the window. because first of all it is in recession. they're supposed to be gone until 2013. they are not gone, they're still around, which means there is no inter-recess. gerri: technically they declared recess, so that meant they are out, whether they were physically there or not it doesn't make a difference, they declared ahe recess, he can make those arguments. let me move on to something else you will disagree with us much.e this is just about politics? >> yes. t matter.sn' you're asking a legal question.x gerri: i'm asking a political question now. i think the president is using this as an opening and may revisit this. not like oh, shoot, didn't realize it.our
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>> taking full advantage. if that'is that what we want frn government leaders? >> what he can take full advantage of. >> i agree it is taking advantage. but is that the message we want to send? when do we say let's take off i am with stupid t-shirts. this is why we don't get anything done.>> gerri: how do you think the court will rule in this? >> the court will look at it, the senate was in recess, completely legal and the court will rule. >> no question based on the questions thrown at thert attorneys that the court is. saying come on, wait a second. they were not in recess. >> that is not what gerri is asking. rul gerri asks what will the court ultimately rule? >> they will say no, no, no.
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>> break it down a little bit. >> he broke the law. >> the court will say it was illegal? >> the appointment should go, gone, goodbye.e >> you are wrong.ther gerri: what does the supreme court do? >> whoever loses will appeal and the supreme court will take it or won't take it. i don't think so. of hope they do if nothing else it is enough with this stuff. to do i think anybody in congress can agree on is to get a sound bite about the fiscal cliff. gerri: we agree to disagree, am i right? >> would definitely agree torand disagree. gerri: thank you for coming on. when we come back, the results of the study showing waste, fraud and abuse in the nation's skies. and ibm getting flack from making major changes to the
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retirement program that what cost to employees? could your employer play fast one on you too? i will dissect it all next.
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♪ gerri: there is th sto gerri: there is a story there is not getting a lot of attention today that you need to hear about, particularly if you care about your retirement. ibm overhauling its retirement program. instead of contributing to its employees 401(k) over time the company will have to contribute a lump-sum payment once a year the move undermines the very idea of retirement savings.
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the attraction of a 401(k) isnes the idea the level of what you pay for investments over time. prices go up, prices go down, overtime advisors say you average out your risks and your cost. but with ibm's new plan, theh advantage largely disappears.. this wouldn't be such a big deal, but ibm has consideredle elite in employee benefits. blazing the trail of innovative policies. in other big companies are sure to follow ibm's lead.t now look, to be sure, shareholders may like the idea because it could save millions of dollars per year ines compensation expenses but employees close to retirement and desperately trying to makee up for losses from the great recession are not going to be so happy.. and also one thing we should sat to be fair, good ibm has a 401(k) plan and contributing too it. but i want to make sure we jealously guard every advantage the small investor has here.
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that is why i am talking about it today, and that is why the press release this week which frankly was a stunner. a trade group representing mutual funds and other investment companies whosell u products we all used to fund our balances.atio after an examination of research and data, they give the members a thumbs up on the job system forr retirement. well done they are telling thei. members. i disagree. americans struggling in their efforts to put together adequato retirement savings. total retirement dollars have risen over the nearly 30 years the trade group studied, but you would expect that because manyx households lost the benefit of p company-sponsored pensions and forced to start saving on theiro own.o lo we need to look at the cold hard reality. majority of americans some 75% have less than $30,000 in the retirement accounts back in 2010.rity
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the savings accrued by the majority of middle-class seniors won't support their current standard of living. instead of clapping each other on the back, have to get serious about what eventually will be af retirement catastrophe if we don't do something different. applauding the move because it saves a penny or two is a big fat mistake. coming up, another example of waste, fraud and abuse. government airports, many of which spend the week practically empty, taxpayers footing the bill as usual and ex-consumer reports making a list and checking it twice just like somebody else we know. find out who they think is naughty and nice this year.
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gerri: where's the government wasting gerri: where is the government wasting your hard-earned taxpayer dollars? this time, ghost airports. taxpayer dollars subsidizing rural airports with little to no traffic.ew the next guest says these airports meant to bring nemiwjut
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economic activity just end up bringing more debt. should the government be involved in the first place? claiming now, senior fellow at the manhattan institute and book shakedown, continuing conspiracy against american taxpayer. what's going on? why is the government involved in developing airports? >> of course the governmentl go approves and runs the whole system, the federal government and the essentially local governments, counties, cities, they create airports in faa.nction with the what is happening around the country is like what i call if you build it they will come fallacy. remember that movie. that was fantasy. people don't seem to understand that, so whatde happens is aroud the country you have dallas-fort worth and atlanta, because the regions are growing, they are investing in their airports.
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gerri: a lot of developments around there. >> what is happening is in other places around the country they look at this and say they're spending money in the region is growing. if we spend money on our airports, our region will grow.e no. all these examples. gerri: mid-america st. louis.an >> and offload her to st. louis on the one hand and chicago on the other hand. governments ban spending $300 million subsidizing 300 airlines to do business there. all of them gave up with abusi business and don't have any flights out of a there. except occasional charter th flights. this is after 12 years, the county government has invested something like $150 million after they built it.
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it i,s like throwing good money after bad money. gerri: what happened? >> the florida panhandle. a basically a big development company said if we build an airport down here, people will come and this will develop the region. the government, saint joe's and local county authority put $300 million into creating an airport, airport opened just as the florida/national housing was hitting. nothing has happened since then. the company was wasting money on this and other adventures. this airport which basically is doing very little, it is not generating a new economy down
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there.by that is subsidized by taxpayersv gerri: it cost $200 million annually.>> how's it doing keeping rural airports alive? >> the government was going to spend some money, $70 million, it would keep them going for 10 years with subsidies so they could get their own footing e ide rural communities in the air transportation system. only was supposed to last 10 years. 30, 35 years later we're spending $200 million. we're still keeping these airports open. many o these airports have never been able to actually get on their own footing. in one airport, i'll give you an example, you have two or three people per flight. the rest of the flight is subsidized to the tune of $3500 per empty seat by th federal government. that is $200 million. gerri: my money and yours,
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mr. malanga. >> we can afford it of course because washington is in such good shape. gerri: that is rulou shape. gerri: that is ridiculous. i'm still reeling from this last fact. thank you so much for coming on, great to see you. santa isn't the only one with a list. consumer reports put out their third annual naughty and nice list highlighting company practices.d to which companies are getting coal in their stockings this year? with me now, executive director at consumer reports. >> hi, gerri. gerri: always great to see you.d we love your naughty and nice list. i have followed it for a number ofth years. who is number one? >> the naughty list not meant tu talk about companies in general, but talk about specific policies of these companies. on the naughty list is highlighting a policy for this
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year we have to airlines on the naughty list, don't think we've ever had a year withouten at let one airline on the naughty list. delta airlines on there, pretty bge difference between the refundable and nonrefundablend fares. one of the reporters buying up super saver nonrefundable ticke $248 was offered a refundable one that was $737 to $500eren difference basically to ensure thh airplane ticket. gerri: and there is a spirit. guys who talk an awful lot about. what was their practice that you didn't like?ggag >> they drive them nuts, and ifu you carry on a bag and can't gew it under the seat in front of you or put it in the overhead bin, will charge up to $100 fort that. gerri: that is the price of a ticket.disc forever 21, was surprise i was o
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see this, very popular with the young women in our office.n't why don't you like it? >> we don't like one of their policies, a policy of the retailers have as d well. o they have different return policies if you buy something online depending on where you return it, take it to the store they will give you a credit or even exchange it for something only if you mail it back to them will you get a cash refund. those policies are confusing for consumers. gerri: and ticketmaster. tell me about that.mast >> ticketmaster was on the nice list last year, butye this year they're on the naughty list for policy they would charge you $2.50 in order to print out your own ticket at home. they will mail them to you. gerri: that is ridiculous. >> they will mail it to you for free but it could take up to 15 days. it could be pretty anxious.
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gerri: and the m. w., they don't have any spare tires? >> you'll notice you open the trunk the car does not come with a spare tire. they have run flat tires that can run with minor puncture or a kit you can repair the minor puncture yourself but if you have a big blowout or something major tire problem is to be stranded by the side of the road waiting for the tow truck to come. gerri: if i am paying for a bmw, i expect a spare tire.no kudos to those guys,rd they maka nice list. thank you for coming on tonight, great list this year, great stuff, thank you. >> thank you. gerri: we will be right back.
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gerri: one of the stock darlings this year, apple reach a record high $705 earlier this year before taking a plunge in the last few months. i recently sat down with the
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president and asked the difference between apple the stock and apple the company. >> selling a ton of products but here's the biggest issue for me. sales growth and earnings growth have declined. simple as that. they were growing 50, 60, 70 last couple of quarters and the market may be speaking up. and a cycle of a great stocks and the stock went from 15 to 700 since they came out with the ipod. every great stock has a shelf life for me to go 90s in tech and, cisco, microsoft and intel but they got too big, earnings be celebrated and they were sent back into oblivion. not saying the same thing will happen to apple but what i'm saying is the stock is in trouble and the big-money crowd continues to sell. gerri: do we love apple stock too much? is that what is going on here? >> yes, it is over old. if anything goes wrong, only one
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is left to do, that is selling. a lot of big funds have 50-100% of their dollars in that one stock, apple, because it made so much money from it and they don't want to let go of it because it has done so well for them in the past. we have to be careful of that. what is happening with the stock right now, there is no doubt the hands have been raised in a lot of selling.o what i would tell people right now is if you're doing any buying make sure you have a lot of comes. you'll take some white swings. that's what happens and you gets this wild trading an analyst, upgrading, downgrading, saying everything is okay. be be careful. gerri: a lot of the mutual fund managers have bought in whether or not their supposed rebind growth stocks or tech stocks, they will throw it in their fund, a full string with somewe
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big owners of that m stock.have i have to ask you, what other stock is so influential with thp product, is there anything to compare to apple? >> i don't think there's anything close to apple at this point in time. a not even folks close. i have been trying to tell the nasdaq and the nasdaq 100 they really need to change how much apple is worth to those indices because when it dropped 6%ay yesterday, it had made the nasdq and nasdaq 100 drop too much. they have to change that dynamic if things worsen. gerri: has to look forward, as the stock changes dramatically, does it go down more? and they will start manufacturing here in the states. it seems a lost like a political move.>> is that good or bad?
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speaker does not matter to their stock. there are 40,000, and quoted saying there is something had to do both jobs in the united states. the big story going forward as i see it, competition has really picked up, and economics 101 when competition picks up usually margins get squeezed alb little bit. if margins get squeezed, profits are affected and the stock reacts negatively and you see that right now. the stock is forecasting it. gerri: five different products yesterday, everybody has got one. does not have the market cornered anymore. always a pleasure to have you on the show, thank you for coming on tonight. speak always my pleasure, thank you.l gerri: it is fiscal cliff season and christmas season but also oscar season with some of the mostd critically acclaimed fils
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of the year and moviegoers flocked to the best of the best. and some films few actually go to even of a star for the upggest hollywood. those stars make up the top five most overpaid actors. number five, jack black. i love jackst black.late his latest film earned only $7 million. for every dollar he was paid his film returned only about $5. not good enough, sorry. number four, sandra bullock. her film sent her oscar-winningc role in "the blind side" have all been flopped at the box office.n. number three, reese witherspoon. apparently she makes bad decisions about which films she does.la her last two including the unheard-of film "the means war" all bombed. for every dollar she is paid to film returned less than $4. number two, emmy winner catherine hagel. her first film was her huge
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success, but her last movie "one for the money" only earned $37 million, it costs $40 million to make. and number one, eddie murphy. his last film supposed to bewo e comeback only made $3 million in profits. it has been five years since he has had a hit movie that was not animated. we will be right back with last-minute tips for donating to charities before the end of the year. we only have a week left, don't go away.
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gerri: if you're considering buying a tablet this holiday season as a gift may be for yourself you're in luck.ere look at prices, navigating this whole thing for you.o editor-in-chief, this is getting trickier and trickier because there are so many of them. so we will take this step by step, very competent, what are the main things to consider? >> what is your budget? budget. >> is a really big range. i have to ask you this question because i am an apple owner. >> okay. that is a tough question. it has gotten a lot hrder. the apple ipod, that is it.
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i still think the apple ipad is ju a small level above the other guys in performance. gerri: appe ipad or that ipad mini? >> 7.9 inches. but it is also more expensive than any of the other guys. 329 database level. if you value design and the system over everything else, that is going to be her choice. >> the kindle fire, everyone loves it. they like it for all kinds of things. what do they make up a? >> i have spent time not just with the kindle fire. this is actually the amazon kindle fire. one of the reasons i am not always crazy about it is i can't find the buttons on it. but it's a gorgeous looking device.
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they are both hd. 12902299 for the larger one. if you get a kindle fire hd. but excellent devices are actually android devices. barnes & noble has done something interesting. they have their own sort of custom interfaces. >> if somebody likes to carry around a tablet, you can read and listen to music and browse the web and you can do e-mails. it is one of the standout
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features, it pumps out a good sound. gerri: so this is the barnes & noble nook. here's the thing about this. another android 4.0 device. they have the 7-inch device for this device. we want the prices are coming down. here is the thing. they have these profiles, this is really designed for use of the family. if you have a kid, you can set thdevice to control the content. the kidle fire also has this as well. gerri: okay, just quickly do a the others. >> google nexus seven. it is basically enjoyed all the way. nothing special about the design.
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this is the best selection of android apps. gerri: how about microsoft surface? >> this is a device that is built for productivity. microsoft designed this microsoft surface tablet. it has a kick stand. it comes with a keyboard. that is something that you could not be do without. this is a powerful device. some people say they are going to buy this, but they know they will have to do work on it. [talking over each other] microsoft dsigned this with productivity in mind. again, this one of the widest devices on the market. gerri: okay, lance, thank you for coming on. that is a big help to people. maybe we can get some of those
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full-screen o the website. it really lays out how to make that decision. >> we have a ton of infor gerri: we will be right back with last-minute tips of donating to charities before the end of the year. still a week left, don't go away. it was my adhd. and like many kids with adhd, i didn't outgrow it. one of the issues i had was not being able to focus. i would read and i would reread the same sentence. you'd read it over and over and over again. and then, five minutes later, i wouldn't know what i just read. it wasn't stking with me. it wasn't sinking in. and that, to me, was really frustrating. as i got older, i was still having that issue. and that's when i knew i needed to talk to the doctor. announcer: if you were diagnosed with adhd as a kid,
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gerri: giving to charity during the holidays is always a good feeling. nearly half of the contributions charities receive are made between thanksgiving and new year's. recently i sat down with the president of charity navigator, and i asked him, what is the most important thing to remembet when giving to charity this year? >> you need to remember now more than ever, the charities really. need their help. there's more of a demand becaus, of unemployment, because of thel challenges out there, theisas disasters and the storms and so forth. and in addition to that, they're already over the fiscal cliff to
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some degree in the sense thatth they're seeing very large r reductions in the amount of support they get for the programs they provide through government funding. already gota haircut. gerri: they're squeezed both ways? >> indeed they are. gerri: your organization doing a lot of polling of the peop who give and the people who take. what are you hearing? >> we hear people are planning to give at least a little bit more. the economy has slowly improved. people feel they are able to give a bit more and need out there is tremendous for the services of many of these charities. gerri: now the beauty of your website is that you actually rate, rank the charities and talk about what they're good at, what they're bad at. how much of their money is actually going to the charitable cause they're pursuing. tell us about a little bit about your website and what is it people really need to pay attention to when they're picking a charity? >> sure. we rate more charities than any other organization in the world. we're about, half of all the money in donations goes to those charities we evaluate and we're continuing to
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expand. there are three critical things people should consider and our website is rking on al of that. one is the finances of the organization. is the money going to the right place? does the organization have sustainability, financial health? the second area what we call best practice, governance, accountability and transparency. it is all about do they have a strong board so the ceo is accountable to others and they're ethical in their practices. the third is mission critical. what about the results of ireork? do you do more than story telling? if you have an employment program w many people are employed a year out? really meaningful information that you're changing lives. gerri: we were tking in the break about some of the things go wrong or awry with charities. you have to be careful in choosing one. telemarketing firms are a big issue. what is going on? >> there are a number of investigations and congress is thinking of getting involved as well. apparently telemarketers are gouging more and more money out of a lot of charitable donations and a lot of
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relatively large charities are getting involved. what it means for a donor, 50 cents of your dollar, 90 cents your dollar, in some cases 100% of your dollar is going to the telemarketers of your cause. gerri: you say no strings attached what does thatt3 mean? >> once you trust, you come to organizations like ours, don't hamstring them and say just use the money for this purpose because your dollars are precious and emergency and crisis you give them the exibility to make the judgment on the ground it can be incredibl powerful and helpful. gerri: find the perfect fit. you do want to find a charity out there doing something you're interested in andonnected to, right? >> yes. sometimes a charity will have a broad mission that sounds right but if you drill it down it may not be what you have in mind. for example an organization in the area of cancer and you think they're providing examinatns and it turns out they're doing lobbying. so you real need to know it fits what you're

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